Reading a Paystub

DIRECTIONS: Write the letter of the item on the paystub that matches its name in the list. Then, write your
OWN definition of each part of the paystub, using COMPLETE SENTENCES in your OWN words.








1. __D___ Gross Pay: Gross pay is the total amount of money one made during a period of time working
before taxes.
2. __C___ Net Pay: Net pay is the amount of money from your pay you get after taxes are taken out.
3. __E-I___ Deductions: Deductions are all the money in taxes taken out of ones gross pay.
4. __A___ Pay Period: A pay period is a certain amount of time which an employee is being paid for.
5. __G___ FICA: FICA is an act that made it a legality for 12.4% of earned incomes to be paid into Social
Security, and an additional 2.9% to be paid into Medicare.
6. __J___ Year-to-Date: Year-to-Date is the total of all taxes taken out of ones paychecks beginning
January 1.
7. __E___ Federal Withholding Tax: The Federal Withholding Tax is the required amount of money an
employer needs to take out of an employees paycheck to pay taxes.
8. __H___ Medical: Medical is an amount of money taken from an employees paycheck for health
benefits.
9. __F___ State Withholding Tax: The State Withholding Tax is the amount of money taken out of an
employees paycheck and paid to the state to fund state government agencies.
10. __I___ Retirement: Retirement is the amount of money taken out of an employees paycheck that funds
their own retirement plan (sponsored by the employer).